PC demand will plummet in latter half of year - analyst

Demand for products to enable remote working and learning will see a strong Q2, according to IDC

The PC market in EMEA will contract in the final six months of the year due to the impending global recession, according to data from IDC.

Shipments of traditional PCs - desktops, notebooks and workstations - in EMEA will total 68.3 million in 2020, a 6.3 per cent year-on-year decline. The demand for these devices generated by lockdowns across Europe will lead to a shipment growth in the second quarter of the year, but the "broader ramifications" of the pandemic will lead to an overall decline.

"Three factors expected to drive growth of Western European PC market in 2020Q2 are unprecedented surge in PC demand under lockdown, backlog fulfilment from 2020Q1, and early pull-in of orders from 2020H2, all driven by the COVID-19 pandemic," said Malini Paul, research manager for IDC Western European Personal Computing Devices.

"However, with anticipated recessions hitting 2020H2, demand is expected to drop, primarily driven by small and medium businesses."

Notebooks are expected to see double-digit growth in the second quarter of the year, driven by the pivot to remote working and learning for employees and students. Despite the increased demand for mobile devices, desktops shipments will still see sustained demand in certain industries where data sensitivity is paramount, such as banking and finance.

However, the latter half of 2020 will have a negative impact on both products, as the financial fallout from lockdown will inhibit IT spending by organisations, particularly SMBs.

The second quarter of 2020 is expected to see a spike in the consumer segment, with an anticipated year-on-year increase of 8.7 per cent. This will be generated by demand for mobile form factors in households that will require multiple devices for study and entertainment. Desktops shipments will see a slight decline but will be supported by the demand for gaming.

The second half of 2020 will be negative in the consumer segment as well, as the economic downturn will influence consumer sentiment, as well as constrain overall consumer buying power.